Health Insurance for Laid Off Federal Workers

Federal Employee Health Insurance after Layoff

All Federal employees enrolled in a Federal Employees Health Benefits (FEHB) plan will receive 31 days of coverage, at no charge, immediately after the last day of their final pay period. This 31 day temporary extension of coverage allows for time to decide which health insurance option is the best fit for you going forward:

Temporary Continuation of Coverage (TCC): You must apply within 60 days after loss of coverage or 60 days from the date you are notified of your eligibility to elect TCC, whichever is later. Typically, the day you receive your final SF-50 begins the 60 day deadline. TCC can be utilized for up to 18 months after your separation and you are responsible for paying your premium as well as the portion that was previously paid by the government, plus a 2% administrative fee. See the OPM Guide for more information about the FEHB and TCC.

Health Insurance Marketplace: Keep reading below for a step-by-step guide to getting health insurance through the Affordable Care Act's Health Insurance Marketplace.

Losing your job can be overwhelming, and one of the most pressing concerns is securing health insurance. Fortunately, the Health Insurance Marketplace, established under the Affordable Care Act (ACA), provides options for individuals who lose employer-sponsored health coverage. If you recently lost your job, here’s what you need to know about getting health insurance through the Marketplace.

1. Qualifying for a Special Enrollment Period (SEP)

Normally, you can only sign up for Marketplace health insurance during the Open Enrollment Period, which typically runs from November to mid-January each year. However, if you lose job-based health coverage, you qualify for a Special Enrollment Period (SEP).

The SEP gives you 60 days from the date you lose coverage to enroll in a Marketplace plan.
If you miss this window, you’ll have to wait until the next Open Enrollment Period, unless you qualify for another SEP (such as getting married, having a baby, or moving).

2. How to Apply for Marketplace Coverage

You can apply for health insurance through the Marketplace in several ways:

Online at HealthCare.gov
By calling the Marketplace Call Center at 1-800-318-2596.
With in-person assistance from a certified enrollment counselor or agent.

To complete the application, you’ll need:

Personal information (name, birthdate, Social Security number).
Household income details, including unemployment benefits.
Proof of recent coverage loss (such as a letter from your employer, COBRA notice, SF-50, or SF-8).

3. Understanding Plan Options and Costs

Marketplace plans are categorized into four metal tiers:

Bronze: Low monthly premiums, high out-of-pocket costs.
Silver: Moderate premiums and costs (best option for cost-sharing reductions if you qualify).
Gold: Higher premiums, lower out-of-pocket costs.
Platinum: Highest premiums, lowest out-of-pocket expenses.

4. Financial Assistance and Subsidies

Many people qualify for financial assistance to reduce the cost of coverage:

Premium Tax Credits: Reduce your monthly premium if your income is between 100% and 400% of the Federal Poverty Level (FPL).
Cost-Sharing Reductions (CSRs): Lower deductibles and out-of-pocket costs if you enroll in a Silver plan and earn up to 250% of the FPL.
Medicaid and CHIP: If your income is low enough, you may qualify for Medicaid or the Children's Health Insurance Program (CHIP), which provides free or low-cost coverage.

5. Coverage Start Dates

If you enroll before the 15th of the month, coverage usually starts on the first day of the following month.
If you enroll after the 15th, coverage starts the first day of the second following month (unless your state has different rules).

Losing your job doesn’t mean you have to go without health insurance. By taking advantage of the Special Enrollment Period, understanding your plan options, and applying for financial assistance, you can find affordable coverage through the Marketplace. Don’t wait—act within the 60-day window to ensure you stay covered!